My Thoughts On Amazon Stock Soaring

TL;DR

Amazon's stock has experienced significant volatility in the past, with a 60% drop and subsequent rebound. The company has changed the retail landscape and dominates online retail sales. The appropriate price to pay for Amazon today depends on its valuation and potential for future growth.

Transcript

in the last two years Amazon has fallen by 60% and rebounded almost completely the right now the price is 181 guys it got to $188 give or take on what date here in our software July 13th of 2011 so almost three years now two and a half years it fell all the way to $80 a share roughly a 60% drop now was this the buying opportunity I don't know but r... Read More

Key Insights

• 🍝 Amazon's stock has experienced significant volatility in the past, highlighting the importance of understanding and managing stock fluctuations.
• 💪 The company's dominance in online retail sales, accounting for 50% of all online sales in the US, demonstrates its strong position in the market.
• 🪐 Amazon's financials show consistent growth, with its net sales and earnings per share increasing over the years.
• 💗 AWS is a significant contributor to Amazon's revenue, being a fast-growing and high-margin business.
• ❓ Determining the appropriate price to pay for Amazon's stock requires considering its valuation and potential for future growth.
• 🍉 Emotional management and handling market fluctuations are crucial in long-term investing.
• ❓ Joining an investment community can provide support and like-minded individuals to navigate the challenges of investing.

Questions & Answers

Q: How has Amazon's stock price performed in the past?

Amazon's stock experienced a 60% drop in the last two years before rebounding. It fell to $80 a share and is currently priced at $181.

Q: What is the significance of Amazon's dominance in online retail sales?

Amazon accounts for 50% of all online retail sales in the US, which illustrates its immense market share and influence in the industry.

Q: What are the key factors driving Amazon's revenue growth?

Amazon's net sales have shown consistent growth, with its North America, International, and AWS segments contributing to the revenue increase. AWS, in particular, is a high-margin business that has attracted major players in the industry.

Q: What is the appropriate price to pay for Amazon's stock?

The appropriate price to pay for Amazon depends on its valuation and potential for future growth. Analysts have varying estimates, but it is important to consider a margin of safety in determining the right price to pay.

Summary & Key Takeaways

• Amazon's stock fell by 60% in the past but has rebounded to its current price of $181. Stock volatility is important to understand, as individual stocks can experience significant fluctuations.

• Amazon has revolutionized the retail industry and dominates online retail sales, accounting for 50% of all online retail sales in the US.

• The company's financials show consistent growth, with increasing net sales and earnings per share. Amazon Web Services (AWS) is a fast-growing and high-margin business contributing significantly to its revenue.